UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of report (Date of earliest event
reported) January 28, 2009
|
ALIGN TECHNOLOGY, INC.
|
|
(Exact
Name of Registrant as Specified in Its
Charter)
|
|
(State
or Other Jurisdiction of
Incorporation)
|
|
0-32259
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94-3267295
|
|
|
(Commission
File Number)
|
(IRS
Employer Identification
No.)
|
|
881 Martin Avenue, Santa Clara,
California
|
95050
|
|
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(Address
of Principal Executive Offices)
|
(Zip
Code)
|
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(408) 470-1000
|
|
(Registrant’s
Telephone Number, Including Area
Code)
|
|
(Former
Name or Former Address, if Changed Since Last
Report)
|
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2.
below):
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
2.02 RESULTS OF OPERATIONS AND FINANCIAL
CONDITIONS
On January 28, 2009, Align Technology,
Inc. ("Align") is issuing a press release and holding a conference call
regarding its financial results for its fourth quarter and fiscal year ended
December 31, 2008. The full text of the press release is furnished as Exhibit
99.1 to this Form 8-K.
This information shall not be deemed
"filed" for purposes of Section 18 of the Securities and Exchange Act of 1934,
as amended (the "Exchange Act"), or incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except as
shall be expressly set forth by specific reference in such a
filing.
Align is
making reference to non-GAAP financial information in both the press release and
the conference call. A reconciliation of non-GAAP financial measures contained
in the attached press release to the comparable GAAP financial measures is
contained in the attached press release and a reconciliation of these and
certain other non-GAAP financial information provided on the conference call (to
the extent not reconciled on such call) is contained on the Investor Relations
section of our website at investor.aligntech.com.
ITEM
9.01 Financial Statements and Exhibits
(d)
Exhibits
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release of Align Technology, Inc. dated January 28,
2009
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
ALIGN
TECHNOLOGY, INC.
|
||
|
By:
|
/s/Kenneth
B. Arola
|
|
|
Kenneth
B. Arola
|
||
|
Vice
President, Finance and Chief Financial
Officer
|
||
INDEX
TO EXHIBITS
|
Exhibit
No.
|
Description
|
|
99.1
|
Press
Release of Align Technology, Inc. dated January 28,
2009
|
 |
 |
|
Press
Contact
|
|
|
Shirley
Stacy
|
Shannon
Mangum Henderson
|
|
Align
Technology, Inc.
|
Ethos
Communication, Inc.
|
|
(678)
540-9222
|
|
|
sstacy@aligntech.com
|
align@ethoscommunication.com
|
Align
Technology Announces Fourth Quarter and Fiscal 2008 Results
SANTA
CLARA, Calif., January 28, 2009 — Align Technology, Inc. (Nasdaq: ALGN) today
reported financial results for the fourth quarter and fiscal year ended December
31, 2008.
Total net
revenues for the fourth quarter of fiscal 2008 (Q4 08) were $74.1 million
compared to $72.5 million reported in the fourth quarter of 2007 (Q4 07) and
compared to $75.2 million reported in the third quarter of 2008 (Q3
08). For fiscal 2008 (FY 08), net revenues of $304.0 million
increased 6.9 percent from $284.3 million reported for fiscal 2007 (FY
07).
“Despite
the challenges of fiscal 2008 we had many significant accomplishments,” said
Thomas M. Prescott, president and CEO of Align Technology. “We
successfully launched three new products including Invisalign Teen, grew annual
revenues during the worst business environment in decades, and took action to
reduce the Company’s cost structure. As we embark on a new year, the
economy remains very difficult and our outlook is more
uncertain. However, the market opportunity and value proposition for
Invisalign is strong and we will continue to execute our strategy to drive
adoption worldwide.”
Net
profit for Q4 08 was $65.5 million, or $0.98 per diluted share. This includes a
restructuring charge of $4.0 million and a favorable impact of approximately
$64.6 million, or $0.97 per diluted share from the release of a tax valuation
allowance on specific deferred tax assets. This is compared to net
profit of $5.7 million, or $0.08 per diluted share in Q4 07, and net profit of
$5.2 million, or $0.08 per diluted share in Q3 08. Stock-based
compensation expense included in Q4 08 net profit was $3.9 million compared to
$3.4 million in Q4 07, and $4.4 million in Q3 08.
Net
profit for fiscal 2008 was $80.0 million, or $1.18 per diluted share, which
includes a restructuring charge of $6.2 million and the favorable impact of
approximately $64.6 million, or $0.95 per diluted share from the release of a
tax valuation allowance on specific deferred tax assets in Q4 08. This compares
to a net profit of $35.7 million, or $0.50 per diluted share in fiscal 2007.
Stock-based compensation expense included in FY 08 net profit was $17.1 million
compared to $12.2 million in FY 07.
Align
Technology Inc. 881 Martin Avenue Santa Clara, CA 95050 Tel: (408)
470-1000 Fax: (408) 470-1201
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
To
supplement our consolidated financial statements, we use the following non-GAAP
financial measures: non-GAAP operating expenses, non-GAAP profit from
operations, non-GAAP net profit and non-GAAP earnings per share. For
Q4 08 and fiscal 2008, the non-GAAP financial measures excluded the impact of
restructuring and the release of the tax valuation allowance from net
profit. For Q3 08, the non-GAAP financial measures excluded the
impact of restructuring, and for fiscal 2007, the non-GAAP financial measures
excluded the impact of the Patients First Program from net profit. A detailed
reconciliation between GAAP and non-GAAP information is contained in the tables
following the financial tables of this release.
Non-GAAP
net profit for Q4 08 was $4.9 million, or $0.07 per diluted share. This is
compared to non-GAAP net profit of $7.3 million, or $0.11 per diluted share in
Q3 08. In Q4 07, there was no difference between GAAP and non-GAAP net
profit. Non-GAAP net profit for fiscal 2008 was $21.5 million or
$0.32 per diluted share. This compares to a non-GAAP net profit of $34.0 million
or $0.48 per diluted share in fiscal 2007.
Q4 08 Operating
Results
|
Key
GAAP Operating Results
|
Q4
08
|
Q3
08
|
Q4
07
|
|||||||||
|
Gross
Margin
|
72.7 | % | 75.0 | % | 73.6 | % | ||||||
|
Operating
Expense
|
$ | 52.6M | $ | 50.7M | $ | 48.4M | ||||||
|
Operating
Margin
|
1.8 | % | 7.6 | % | 6.9 | % | ||||||
|
Net
Profit
|
$ | 65.5M | $ | 5.2M | $ | 5.7M | ||||||
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Earnings
Per Diluted Share (EPS)
|
$ | 0.98 | $ | 0.08 | $ | 0.08 | ||||||
|
Key
Non-GAAP Operating Results
|
Q4
08
|
Q3
08
|
Q4
07
|
|||||||||
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Non-GAAP
Operating Expense
|
$ | 48.5M | $ | 48.5M | $ | 48.4M | ||||||
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Non-GAAP
Profit from Operations
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$ | 5.4M | $ | 7.9M | $ | 5.0M | ||||||
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Non-GAAP
Net Profit
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$ | 4.9M | $ | 7.3M | $ | 5.7M | ||||||
|
Non-GAAP
Earnings Per Diluted Share (EPS)
|
$ | 0.07 | $ | 0.11 | $ | 0.08 |
Liquidity and Capital
Resources
As of
December 31, 2008, Align had $110.2 million in cash, cash equivalents, and short
term marketable securities compared to $127.9 million as of December 31,
2007. During Q4 08,
Align purchased 1.5 million shares of its common stock at an average price of
$6.92 per share for a total of $10.7 million. For fiscal 2008, Align purchased a
total of 4.7 million shares of its common stock at an average price of $10.73
per share for a total of $50.0 million. The Company’s $50 million
stock repurchase authorization has been completed.
- 2
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
Key Business
Metrics
The
following table highlights business metrics for Align’s fourth quarter of
2008. Additional historical information is available on the Company’s
website at http://investor.aligntech.com.
|
Revenue
by Channel:
|
Q4
08
|
Q4
08/Q3 08
%
Change
|
Q4
08/Q4 07
%
Change
|
|||||||||
|
U.S.
Orthodontists
|
$ | 21.2 | (5.0 | )% | (1.2 | )% | ||||||
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U.S.
GP Dentists
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$ | 33.6 | (4.5 | )% | 0.3 | % | ||||||
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International
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$ | 16.2 | 7.4 | % | 14.4 | % | ||||||
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Training
and Other
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$ | 3.1 | 20.4 | % | (8.6 | )% | ||||||
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Total
Revenue
|
$ | 74.1 | (1.4 | )% | 2.2 | % | ||||||
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Average
Selling Price (ASP):
|
Q4
08
|
Q4
08/Q3 08
%
Change
|
Q4
08/Q4 07
%
Change
|
|||||||||
|
Total
Worldwide Blended ASP
|
$ | 1,370 | (0.7 | )% | 0.7 | % | ||||||
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Total
Worldwide ASP excluding Invisalign Express
|
$ | 1,470 | (2.0 | )% | 0.0 | % | ||||||
|
U.S.
Orthodontists Blended ASP
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$ | 1,300 | 0.8 | % | 4.8 | % | ||||||
|
U.S.
GP Dentists Blended ASP
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$ | 1,350 | (0.7 | )% | 2.3 | % | ||||||
|
International
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$ | 1,510 | (9.0 | )% | (14.2 | )% | ||||||
|
Number
of Cases Shipped:
|
Q4
08
|
Q4
08/Q3 08
%
Change
|
Q4
08/Q4 07
%
Change
|
|||||||||
|
U.S.
Orthodontists – Full Invisalign
|
14,010 | (6.6 | )% | (1.8 | )% | |||||||
|
U.S.
Orthodontists – Invisalign Express
|
3,000 | 1.0 | % | (2.0 | )% | |||||||
|
U.S.
GP Dentists – Full Invisalign
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20,460 | (2.9 | )% | (1.6 | )% | |||||||
|
U.S.
GP Dentists – Invisalign Express
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4,400 | (4.8 | )% | (5.0 | )% | |||||||
|
International–
Full Invisalign
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10,480 | 17.1 | % | 31.8 | % | |||||||
|
International–
Invisalign Express
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290 | 52.6 | % | 141.7 | % | |||||||
|
Total
Cases Shipped
|
52,640 | (0.3 | )% | 3.6 | % | |||||||
|
Number
of Doctors Cases were Shipped to:
|
Q4
08
|
|||||||||||
|
U.S.
Orthodontists
|
3,670 | |||||||||||
|
U.S.
GP Dentists
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10,760 | |||||||||||
|
International
|
3,160 | |||||||||||
|
Total
Doctors Cases were Shipped to Worldwide
|
17,590 | |||||||||||
|
Number
of Doctors Trained Worldwide:
|
Q4
08
|
Cumulative
|
||||||||||
|
U.S.
Orthodontists
|
60 | 8,670 | ||||||||||
|
U.S.
GP Dentists
|
1,360 | 32,660 | ||||||||||
|
International
|
520 | 14,180 | ||||||||||
|
Total
Doctors Trained Worldwide
|
1,940 | 55,510 | ||||||||||
|
Multiple
Case Doctors (Cumulative as of):
|
Q4
08
|
|||||||||||
|
U.S.
Orthodontists
|
90.7 | % | ||||||||||
|
U.S.
GP Dentists
|
86.0 | % | ||||||||||
|
International
|
77.4 | % | ||||||||||
|
Doctors
Starting Invisalign Treatment (Cumulative as of):
|
Q4
08
|
|||||||||||
|
U.S.
Orthodontists
|
7,140 | |||||||||||
|
U.S.
GP Dentists
|
25,960 | |||||||||||
|
International
|
8,160 | |||||||||||
|
Total
Doctors Starting Invisalign Treatment
|
41,260 | |||||||||||
- 3
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
|
Doctor
Utilization Rates*:
|
Q4
08
|
Q3
08
|
Q4
07
|
|||||||||
|
U.S.
Orthodontists
|
4.6 | 4.8 | 4.8 | |||||||||
|
U.S.
GP Dentists
|
2.3 | 2.4 | 2.5 | |||||||||
|
International
|
3.4 | 3.2 | 3.2 | |||||||||
|
Total
Utilization Rate
|
3.0 | 3.0 | 3.1 |
*
Utilization = # of cases/# of doctors to whom cases were shipped
Business
Outlook
Commenting
on Align’s business outlook, Kenneth Arola, vice president of finance and CFO
said, “The economic environment and its impact on consumer spending has created
greater uncertainty for our business. As a result, we are only
providing guidance for Q1 09. The greatest uncertainties beyond Q1
involve case volume and revenues. We believe it will be very
difficult to grow in this environment and are expecting revenues to decline from
2008. We will continue to invest in our key strategic growth initiatives and
manage overall expenses to drive operating profitability for fiscal
2009.”
For the
first quarter of fiscal 2009 (Q1 09), Align Technology expects net revenues to
be in a range of $65 million to $69 million. Operating margin for Q1 09 is
expected to be in a range of -4% to 0%. GAAP earnings per diluted share for Q1
09 is expected to be in a range of a loss of $0.04 to
breakeven. Non-GAAP earnings per diluted share for Q1 09 is expected
to be in a range of a loss of $0.03 to a profit of $0.01. Stock-based stock
compensation expense for Q1 09 is expected to be approximately $4.2
million.
A more
comprehensive business outlook is available following the financial tables of
this release.
Align Web Cast and
Conference Call
Align
Technology will host a conference call today, January 28, 2009 at 4:30 p.m. ET,
1:30 p.m. PT, to review its fourth quarter and fiscal 2008 results, discuss
future operating trends and business outlook. The conference call will also be
web cast live via the Internet. To access the web cast, go to the
“Events & Presentations” section under Company Information on Align
Technology’s Investor Relations web site at http://investor.aligntech.com. To
access the conference call, please dial 201-689-8341 approximately fifteen
minutes prior to the start of the call. If you are unable to listen
to the call, an archived web cast will be available beginning approximately one
hour after the call's conclusion and will remain available for approximately 12
months. Additionally, a telephonic replay of the call can be accessed by dialing
877-660-6853 with account number 292 followed by # and conference number 309050
followed by #. The replay must be accessed from international locations by
dialing 201-612-7415 and using the same account and conference numbers
referenced above. The telephonic replay will be available through 5:30 p.m. ET
on February 11, 2009.
About Align Technology,
Inc.
Align
Technology designs, manufactures and markets Invisalign, a proprietary method
for treating malocclusion, or the misalignment of teeth. Invisalign corrects
malocclusion using a series of clear, nearly invisible, removable appliances
that gently move teeth to a desired final position. Because it does not rely on
the use of metal or ceramic brackets and wires, Invisalign significantly reduces
the aesthetic and other limitations associated with braces. Invisalign is
appropriate for treating adults and teens. Align Technology was founded in March
1997 and received FDA clearance to market Invisalign in 1998. Today, the
Invisalign product family includes Invisalign, Invisalign Teen, Invisalign
Assist, Invisalign Express, and Vivera Retainers.
- 4
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
To learn
more about Invisalign or to find a certified Invisalign doctor in your area,
please visit www.invisalign.com or call 1-800-INVISIBLE.
About non-GAAP Financial
Measures
To
supplement our consolidated financial statements and our business outlook, we
use the following non-GAAP financial measures: non-GAAP operating expenses,
non-GAAP profit from operations, non-GAAP net profit, and non-GAAP earnings per
share, which exclude the effect of charges associated with the
restructuring,
Patients First Program expenses and the related tax effect of those
expenses, as well as the release of the tax valuation allowance. The
presentation of this financial information is not intended to be considered in
isolation or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. For more information on these
non-GAAP financial measures, please see the tables captioned “Business Outlook
Summary” included at the end of this release.
We use
these non-GAAP financial measures for financial and operational decision making
and as a means to evaluate period-to-period comparisons. Our management believes
that these non-GAAP financial measures provide meaningful supplemental
information regarding our “core operating performance”. Management believes that
“core operating performance” represents Align’s performance in the ordinary,
ongoing and customary course of its operations. Accordingly, management excludes
from “core operating performance” certain expenditures and other items that may
not be indicative of our operating performance including discrete cash charges
that are infrequent or one-time in nature. We believe that both management and
investors benefit from referring to these non-GAAP financial measures in
assessing our performance and when planning, forecasting and analyzing future
periods. These non-GAAP financial measures also facilitate management's internal
evaluation of period-to-period comparisons. We believe these non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its financial and
operational decision making and (2) they are provided to and used by our
institutional investors and the analyst community to facilitate comparisons with
prior and subsequent reporting periods.
Forward-Looking
Statement
This news
release, including the tables below, contains forward-looking statements,
including statements regarding, certain business metrics for the first quarter
of 2009, including anticipated revenue, gross margin, operating expense,
operating income, earnings per share, case shipments and cash. Forward-looking
statements contained in this news release and the tables below relating to
expectations about future events or results are based upon information available
to Align as of the date hereof. Readers are cautioned that these forward-looking
statements are only predictions and are subject to risks, uncertainties and
assumptions that are difficult to predict. As a result, actual results may
differ materially and adversely from those expressed in any forward-looking
statement. Factors that might cause such a difference include, but are not
limited to, failure to achieve the expected cost savings and efficiencies
related to the restructuring, including a delay in the implementation of the
relocation of certain customer facing organizations from Santa Clara, California
to Costa Rica and greater than anticipated costs resulting from the relocation,
changes in the size of the expected restructuring charge, loss of key personnel
responsible for execution of the relocation in a timely manner, failure to
effectively manage the relocation resulting in decreased customer service
levels, the possibility that the development and release of new products does
not proceed in accordance with the anticipated timeline, the possibility that
the market for the sale of these new products may not develop as expected, the
risks relating to Align's ability to sustain or increase profitability or
revenue growth in future periods while controlling expenses, continued customer
demand for Invisalign and new products, changes in consumer spending habits as a
result of, among other things, prevailing economic conditions, levels of
employment, salaries and wages and consumer confidence, the timing of case
submissions from our doctors within a quarter, acceptance of Invisalign by
consumers and dental professionals, Align's third party manufacturing processes
and personnel, foreign operational, political and other risks relating to
Align's international manufacturing operations, Align's ability to protect its
intellectual property rights, competition from manufacturers of traditional
braces and new competitors, Align's ability to develop and successfully
introduce new products and product enhancements, and the loss of key personnel.
These and other risks are detailed from time to time in Align's periodic reports
filed with the Securities and Exchange Commission, including, but not limited
to, its Annual Report on Form 10-K for the fiscal year ended December 31, 2007,
which was filed with the Securities and Exchange Commission on February 26,
2008. Align undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
- 5
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
|
December 31,
2008
|
December 31,
2007
|
December 31,
2008
|
December 31,
2007
|
||||||||||||
|
Net
revenues
|
$ | 74,125 | $ | 72,517 | 303,976 | $ | 284,332 | |||||||||
|
Cost
of revenues
|
20,233 | 19,127 | 78,850 | 75,035 | ||||||||||||
|
Gross
profit
|
53,892 | 53,390 | 225,126 | 209,297 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Sales
and marketing
|
26,325 | 26,502 | 115,062 | 98,231 | ||||||||||||
|
General
and administrative
|
16,249 | 15,266 | 62,154 | 53,280 | ||||||||||||
|
Research
and development
|
5,951 | 6,610 | 26,165 | 25,727 | ||||||||||||
|
Restructuring
|
4,042 | 6,231 | - | |||||||||||||
|
Patients
First Program
|
- | - | - | (1,796 | ) | |||||||||||
|
Total
operating expenses
|
52,567 | 48,378 | 209,612 | 175,442 | ||||||||||||
|
Profit
from operations
|
1,325 | 5,012 | 15,514 | 33,855 | ||||||||||||
|
Interest
and other income (expense), net
|
(111 | ) | 852 | 1,562 | 3,095 | |||||||||||
|
Profit
before income taxes
|
1,214 | 5,864 | 17,076 | 36,950 | ||||||||||||
|
Provision
for (benefit from) income taxes
|
(64,282 | ) | 196 | (62,911 | ) | 1,226 | ||||||||||
|
Net
profit
|
$ | 65,496 | $ | 5,668 | $ | 79,987 | $ | 35,724 | ||||||||
|
Net
profit per share
|
||||||||||||||||
|
-
basic
|
$ | 0.99 | $ | 0.08 | $ | 1.20 | $ | 0.53 | ||||||||
|
-
diluted
|
$ | 0.98 | $ | 0.08 | $ | 1.18 | $ | 0.50 | ||||||||
|
Shares
used in computing net profit per share
|
||||||||||||||||
|
-
basic
|
66,440 | 68,562 | 66,812 | 67,176 | ||||||||||||
|
-
diluted
|
66,816 | 71,864 | 68,064 | 71,444 | ||||||||||||
- 6
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
ALIGN
TECHNOLOGY, INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands)
|
December 31, 2008
|
December 31, 2007
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 87,100 | $ | 89,119 | ||||
|
Restricted
cash
|
- | 21 | ||||||
|
Marketable
securities, short-term
|
23,066 | 38,771 | ||||||
|
Accounts
receivable, net
|
52,362 | 44,850 | ||||||
|
Inventories,
net
|
1,965 | 2,910 | ||||||
|
Other
current assets
|
13,414 | 8,846 | ||||||
|
Total
current assets
|
177,907 | 184,517 | ||||||
|
Property
and equipment, net
|
26,979 | 25,320 | ||||||
|
Goodwill
and intangible assets, net
|
8,266 | 11,093 | ||||||
|
Other
long-term assets
|
66,189 | 1,831 | ||||||
|
Total
assets
|
$ | 279,341 | $ | 222,761 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 5,580 | $ | 9,222 | ||||
|
Accrued
liabilities
|
38,282 | 39,875 | ||||||
|
Deferred
revenue
|
16,710 | 12,362 | ||||||
|
Total
current liabilities
|
60,572 | 61,459 | ||||||
|
Other
long term liabilities
|
229 | 148 | ||||||
|
Total
liabilities
|
60,801 | 61,607 | ||||||
|
Total
stockholders' equity
|
218,540 | 161,154 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 279,341 | $ | 222,761 | ||||
- 7
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
ALIGN
TECHNOLOGY, INC.
RECONCILIATION
OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation
of GAAP to Non-GAAP Operating Expenses
(in
thousands)
|
Three Months
Ended
|
||||||||||||
|
December 31,
2008
|
September 30,
2008
|
December 31,
2007
|
||||||||||
|
GAAP
Operating expenses
|
$ | 52,567 | $ | 50,716 | $ | 48,378 | ||||||
|
Restructuring
|
(4,042 | ) | (2,189 | ) | - | |||||||
|
Non-GAAP
Operating expenses
|
$ | 48,525 | $ | 48,527 | $ | 48,378 | ||||||
Reconciliation
of GAAP to Non-GAAP Profit from Operations
(in
thousands)
|
Three Months
Ended
|
||||||||||||
|
December 31,
2008
|
September 30,
2008
|
December 31,
2007
|
||||||||||
|
GAAP
Profit from Operations
|
$ | 1,325 | $ | 5,691 | $ | 5,012 | ||||||
|
Restructuring
|
4,042 | 2,189 | - | |||||||||
|
Non-GAAP
Profit from Operations
|
$ | 5,367 | $ | 7,880 | $ | 5,012 | ||||||
Reconciliation
of GAAP to Non-GAAP Net Profit
(in
thousands, except per share amounts)
|
Three Months
Ended
|
||||||||||||
|
December 31,
2008
|
September 30,
2008
|
December 31,
2007
|
||||||||||
|
GAAP
Net profit
|
$ | 65,496 | $ | 5,157 | $ | 5,668 | ||||||
|
Restructuring
|
4,042 | 2,189 | - | |||||||||
|
Tax
effect on non-GAAP adjustments
|
(43 | ) | (86 | ) | - | |||||||
|
Release
of tax valuation allowance
|
(64,608 | ) | - | - | ||||||||
|
Non-GAAP
Net profit
|
$ | 4,887 | $ | 7,260 | $ | 5,668 | ||||||
|
Diluted
Net profit per share:
|
||||||||||||
|
GAAP
|
$ | 0.98 | $ | 0.08 | $ | 0.08 | ||||||
|
Non-GAAP
|
$ | 0.07 | $ | 0.11 | $ | 0.08 | ||||||
|
Shares
used in computing diluted net profit per share
|
66,816 | 68,704 | 71,864 | |||||||||
- 8
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
ALIGN
TECHNOLOGY, INC.
RECONCILIATION
OF GAAP TO NON-GAAP KEY FINANCIAL METRICS
Reconciliation
of GAAP to Non-GAAP Operating Expenses
(in
thousands)
|
Year Ended
|
||||||||
|
December 31,
2008
|
December 31,
2007
|
|||||||
|
GAAP
Operating expenses
|
$ | 209,612 | $ | 175,442 | ||||
|
Patients
First Program
|
- | 1,796 | ||||||
|
Restructuring
|
(6,231 | ) | - | |||||
|
Non-GAAP
Operating expenses
|
$ | 203,381 | $ | 177,238 | ||||
Reconciliation
of GAAP to Non-GAAP Profit from Operations
(in
thousands)
|
Year Ended
|
||||||||
|
December 31,
2008
|
December 31,
2007
|
|||||||
|
GAAP
Profit from Operations
|
$ | 15,514 | $ | 33,855 | ||||
|
Patients
First Program
|
- | (1,796 | ) | |||||
|
Restructuring
|
6,231 | - | ||||||
|
Non-GAAP
Profit from Operations
|
$ | 21,745 | $ | 32,059 | ||||
Reconciliation
of GAAP to Non-GAAP Net Profit
(in
thousands, except per share amounts)
|
Year Ended
|
||||||||
|
December 31,
2008
|
December 31,
2007
|
|||||||
|
GAAP
Net profit
|
$ | 79,987 | $ | 35,724 | ||||
|
Patients
First Program
|
- | (1,796 | ) | |||||
|
Restructuring
|
6,231 | - | ||||||
|
Tax
effect of non-GAAP adjustments
|
(129 | ) | 43 | |||||
|
Release
of tax valuation allowance
|
(64,608 | ) | - | |||||
|
Non-GAAP
Net profit
|
$ | 21,481 | $ | 33,971 | ||||
|
Diluted
Net profit per share:
|
||||||||
|
GAAP
|
$ | 1.18 | $ | 0.50 | ||||
|
Non-GAAP
|
$ | 0.32 | $ | 0.48 | ||||
|
Shares
used in computing diluted net profit per share
|
68,064 | 71,444 | ||||||
- 9
- -
Align
Technology, Inc. Q4 and 2008 Year End Earnings Release
ALIGN
TECHNOLOGY, INC.
BUSINESS
OUTLOOK SUMMARY
(unaudited)
The
outlook figures provided below and elsewhere in this press release are
approximate in nature since Align’s business outlook is difficult to
predict. Align’s future performance involves numerous risks and
uncertainties and the company’s results could differ materially from the outlook
provided. Some of the factors that could affect Align’s future
financial performance and business outlook are set forth under “Forward Looking
Information” above in this press release.
Financials
(in
millions, except per share amounts and percentages)
|
Q1
2009
|
||||||
|
GAAP
|
Adjustment
|
(a)
|
Non-GAAP
|
|||
|
Net
Revenue
|
$65.0
- $69.0
|
$65.0
- $69.0
|
||||
|
Gross
Margin
|
72.0%
- 72.5%
|
72.0%
- 72.5%
|
||||
|
Operating
Expenses
|
$49.5
- $50.5
|
$1.0
|
(a)
|
$48.5
- $49.5
|
||
|
Operating
Margin
|
(4)%
- 0%
|
1%
- 2%
|
(2)%
- 1%
|
|||
|
Net
Income per Diluted Share
|
$(0.04)
- $0.00
|
$0.01
|
$(0.03)
- $0.01
|
|||
|
Stock
Based Compensation Expense:
|
||||||
|
Cost
of Revenues
|
$0.4
|
$0.4
|
||||
|
Operating
Expenses
|
$3.8
|
$3.8
|
||||
|
Total
Stock Based Compensation Expense
|
$4.2
|
$4.2
|
||||
|
(a) Restructuring
charges
|
||||||
|
Business
Metrics:
|
||||||
|
Q1
2009
|
||||||
|
Case
Shipments
|
44.5K
- 47.0K
|
|||||
|
Cash
|
$108M
- $113M
|
|||||
|
DSO
|
~65
days
|
|||||
|
Capex
|
$3.0M
- $5.0M
|
|||||
|
Depreciation
& Amortization
|
$2.0M
- $3.0M
|
|||||
|
Diluted
Shares Outstanding
|
69M
|
|||||
|
Full
Year 2009:
|
FY
2009
|
|||||
|
Stock
Based compensation
|
$20M
|
|||||
|
Diluted
Shares Outstanding
|
70M
|
|||||
- 10
- -